ABMB-Qtr report 311211(Website) - Alliance Bank Malaysia Berhad

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ALLIANCE BANK MALAYSIA BERHAD (88103-W) (Incorporated in Malaysia) A33 Capital Adequacy (contd.) (c) Breakdown of risk-weighted assets ("RWA") in the various categories of risk-weighted are as follows: 31 December 2011 31 March 2011 Net Risk- Net Risk- Exposure weighted Exposure weighted RM'000 RM'000 RM'000 RM'000 Bank 0% 5,850,052 - 4,259,663 - 20% 4,047,496 809,499 3,809,238 761,848 35% 3,941,168 1,379,409 3,658,493 1,280,473 50% 2,930,435 1,465,217 3,100,139 1,550,070 75% 7,631,695 5,723,771 6,787,185 5,090,388 100% 8,724,300 8,724,300 7,377,785 7,377,785 150% 293,905 440,859 251,122 376,683 Total RWA equivalent for Credit risk 33,419,051 18,543,055 29,243,625 16,437,247 Total RWA equivalent for Market risk - 73,271 - 54,919 Total RWA equivalent for Operational risk - 1,880,624 - 1,863,398 Total Risk-Weighted Assets 33,419,051 20,496,950 29,243,625 18,355,564 Group 0% 7,889,842 - 5,893,876 - 20% 5,167,168 1,033,434 5,115,709 1,023,142 35% 4,360,149 1,526,052 3,991,155 1,396,904 50% 2,967,223 1,483,612 2,640,539 1,320,269 75% 10,383,352 7,787,514 9,319,469 6,989,602 100% 10,378,073 10,378,073 8,883,490 8,883,490 150% 352,401 528,602 357,265 535,898 Total RWA equivalent for Credit risk 41,498,208 22,737,287 36,201,503 20,149,305 Total RWA equivalent for Market risk - 82,674 - 71,884 Total RWA equivalent for Operational risk - 2,384,230 - 2,222,953 Total Risk-Weighted Assets 41,498,208 25,204,191 36,201,503 22,444,142 46
ALLIANCE BANK MALAYSIA BERHAD (88103-W) (Incorporated in Malaysia) PART B - Review of Performance & Current Year Prospect B1 Review of Performance For the current quarter under review, Alliance Bank and its subsidiaries (“the Group”) recorded profit before taxation of RM164.1 million, an increase of 7.6% compared to the corresponding quarter last year. For the nine months ended 31 December 2011, the Group recorded profit before taxation of RM503.8 million, an increase of 13.5% compared to the corresponding period last year. The Group registered a 11.0% growth in interest income due to the 11.5% expansion in loans. Gross loan/financing registered year-on-year growth of 11.5%, driven mainly by the expansion in housing loans and SME lending. Meanwhile, customer deposits grew 8.4% year-on-year with loan-to-deposit ratio at 77.1% as at December 2011, as compared with 75.3% a year ago. As at 31 December 2011, Current and Savings Account (CASA) accounts for 35% of the Group’s customer deposits. Other operating income registered a 33.5% growth mainly due to higher fee income and gains from treasury trading and investment activities. The overall fee-to-total income ratio improved from 20.9% a year ago to 26.1%. Despite the moderate rise of 9.3% in overhead expenses due to the expansion in business operations, the Group’s cost-to-income ratio remained at 46.2% compared to 46.0% a year ago. Reflecting on the on-going efforts to improve asset quality, the Group’s net impaired loans ratio has declined further to 1.4%, as compared with 2.2% as of 31 December 2010. Risk-weighted capital ratio continued to remain strong at 15.2%, with core capital ratio at 11.4% compared to 15.9% and 11.8% respectively a year ago. Performance by business segment The Group’s businesses are presented in the following business segments: Consumer Banking, Business Banking, Financial Markets, Investment Banking and Others. All segments, with the exception of Consumer Banking and Investment Banking, registered higher contributions; both exceptions reported lower profit segment before taxation compared to corresponding quarter/period last year. Consumer Banking Consumer Banking provides a wide range of personal banking solutions which include mortgages, term loans, personal loans, hire purchase facilities, credit cards and wealth management. For the current quarter and nine months ended 31 December 2011, Consumer Banking registered profit before taxation of RM27.6 million and RM123.4 million, a decline of 33.5% and 19.2% respectively, as compared to last year. This was mainly due to lower net income contributed by margin compression. The decrease in net income was offset by lower allowance on impaired loans. The total assets of Consumer Banking were at RM12.8 billion as at 31 December 2011. Business Banking Business Banking encompasses Small-and-Medium Enterprise (“SME”) and Wholesale Banking. Business Banking reported an increase in profit before taxation of 3.4% to RM216.7 million for the nine months ended 31 December 2011 when compared to last year. The increase stemmed from higher net interest income and feebase income arising from the Group’s efforts to grow SME and Wholesale Banking loans. For the current quarter three months ended 31 December 2011, Business Banking registered lower profit before taxation by 13.2% due to higher allowance on impaired loans. The total assets of Business Banking grew by RM2.5 billion or 30.2% to RM10.9 billion as at 31 December 2011. 47
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ABMB-Qtr report 311211(Website) - Alliance Bank Malaysia Berhad

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